Michigan plan calls for gas, diesel tax hike

Michigan Gov. Rick Snyder has proposed bumping up taxes on both gasoline and diesel, as well as hiking vehicle registration fees, in order to raise enough money to pay $1.2 billion annually for road resurfacing in the state.

Snyder has proposed to boost the tax on gasoline from 19 cents per gallon to 33 cents per gallon. The tax on diesel would more than double from 15 cents a gallon to 33 cents under the proposal. The governor has also suggested hiking vehicle registration fees by 25% for large trucks and 60% for cars and light trucks.

Snyder has portrayed increased road funding as a critical investment and says he is open to other suggestions on ways to raise the funds, according to a report in the Lansing State Journal.

The state Senate is also considering a plan to couple a 2-cent increase in the state sales tax with an elimination of the fuel tax that would generate more than $1 billion for road repairs. Voters would have to approve that plan.